German real estate manager Arminius is seeking to invest up to €1bn for a new open-ended office fund.

The newly launched Arminius Manage-to-Sustainability Office fund will seek out real estate opportunities with significant value-add potential in all three ESG dimensions –  protection of our environment, social awareness, and good corporate governance, the manager said.

The fund, which targets a portfolio of up to a billion euros of prime urban locations throughout Germany, expects to have a maximum debt ratio of 60% at the portfolio level. The fund will consider property investments starting from €30m.

Arminius said it has identified 30 urban areas for potential fund investments, including major metropolises such as Hamburg and Cologne as well as smaller but economically vibrant cities such as Wiesbaden, Mainz and Leipzig.

Christian Molter, a managing partner at Arminius, said: “Demand for ESG-compliant office properties is increasing, on both the investor side and the user side.

“Without improvements to existing structures on a massive scale, neither climate goals nor user requirements can possibly be met. With our manage-to-sustainability approach, we aim to invest into office properties which we are highly confident, based on our ESG scoring, can be transformed in a way which is economically attractive.”

The fund is categorised as an article 8 product under the new EU Sustainable Finance Disclosure Regulation.

Hansainvest Hanseatische Investment will serve as the fund’s service-providing capital management company.

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